The markets ended the week higher on positive news from the EU Summit regarding the bailout for Spain, global cues and government’s clarification on GAAR policies. The Sensex closed 439.22 points higher at 17429.98 (2.59%) while the Nifty closed 129.75 points higher at 5278.9 (2.52%).
The Sensex touched an intraday high of 17448.48 and a low of 17134.61 points in trade today. The Nifty touched an intraday high of 5286.25 and a low of 5189.00 as well.
Sentinment in the global markets was buoyed by the decision undertaken by the leaders at the EU Summit in Brussels. Elsewhere, Asian indices also closed higher on an average of 1.5 – 2.2 percent higher on the same news. Similar highs ranging from 1.5 – 2.8 percent was seen on European indices as well. US Stock futures too are expected to open higher, taking cues from the global indices and from the news at the summit. It remains to be seen as to how the financing of bailouts take place in the near future as more and more nations in the eurozone would look to avail such facilities. But it is expected that the week would end on a higher note even for the European and US markets.
On the currency front, Rupee appreciated by 0.82 points to touch 55.975 to the dollar in trade, a clear sign of the bullish global cues in trade.
On the stock front, majority of the shares were gainers with Cairn declining 6 percent on a stake sale by the parent co. Oil marketing firm BPCL declined as well on the cut in petrol prices. Morgan Stanley’s brokerage unit upgraded Indian equities as well, a reason to add to the sentiment in the wake of many downgrades in the recent period. ITC touched a 52 week high of INR 260 today. Reliance Industries purchased 3 cr shares in open market transactions as it gained 2.3 percent to INR 736. L&T also rose 4 percent to INR 1394 on receiving new orders worth INR 1000 cr in June.
Commodities rallied on upbeat global sentiments with WTI at USD 80.21 up 3.24% and Brent trading at USD 94.30 up 3.22%. On the weather front, severe thunderstorms are expected in parts of South Dakota to northern Missouri.
For the week ahead, investors should also keep a watch on the outcome of the summit which ends today.
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(Business Standard, Economic Times and Moneycontrol)
Categories: General News